Section 31 of Income Tax Act for AY 2023-24

Section 31 of Income Tax Act 1961 amended by Finance Act 2022 and Income-tax Rules. Repairs and insurance of machinery, plant and furniture.

Amended and updated notes on section 31 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to repairs and insurance of machinery, plant and furniture.

Chapter IV (Sections 14 to 59) of the Income Tax Act 1961 deals with the provisions related to computation of total income. Section 31 of IT Act 1961-2023 provides for repairs and insurance of machinery, plant and furniture.

Recently, we have discussed in detail section 30 (rent, rates, taxes, repairs and insurance for buildings) of IT Act 1961. Today, we learn the provisions of section 31 of Income-tax Act 1961. The amended provision of section 31 is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 31 of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.

Section-31: Repairs and insurance of machinery, plant and furniture

In respect of repairs and insurance of machinery, plant or furniture used for the purposes of the business or profession, the following deductions shall be allowed—

  • (i) the amount paid on account of current repairs thereto;
  • (ii) the amount of any premium paid in respect of insurance against risk of damage or destruction thereof.

Explanation: For the removal of doubts, it is hereby declared that the amount paid on account of current repairs shall not include any expenditure in the nature of capital expenditure.


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